IPC Conference Dinner 2007 The Role of Sustainability in Europe’s Common Agricultural Policy F. Fischler Stratford-upon-Avon, October 2007

IPC Conference Dinner Outline The European Economic Model A Sustainable CAP –Market Orientation –Environmental Protection –Social Responsibility Sustainable Energy Production Agriculture versus Farming

The Union shall work for the sustainable development of Europe based on balanced economic growth and price stability, a highly competitive social market economy, aiming at full employment and social progress, and a high level of protection and improvement of the quality of the environment. It shall promote scientific and technological advance. Article I-3 (3) first part (Treaty establishing a Constitution for Europe) ‏

Added value of the market Maintenance of social freedom Basis for life natural resources Market Economy Market Economy Ecological Social

IPC Conference Dinner CAP-Market Orientation Intervention abolished or reduced to a minimum safety net Phasing out of export subsidies Phasing out dairy quotas Abolition of set a side and energy crop support programs Decoupling of farm support Farmers exposed to price volatility Growing market segmentation Modernizing and restructuring of farms Strict financial discipline

IPC Conference Dinner CAP-Environmental Protection Extensification of farming practices through reduced production incentives Direct support (SFP) conditioned with obligatory food standards, environmental and animal welfare rules Public private partnership to deal with public services Allowances to maintain the cultural landscapes in less favored areas and valuable biotopes

IPC Conference Dinner CAP-Social Responsibility Income support via decoupled aid Education and training programs Young farmer start up support Strengthening infrastructure on the countryside Dealing with the aging and migration problems of the rural population

IPC Conference Dinner Sustainable Energy Production

IPC Conference Dinner Biofuel European Goals: 2010:5.75 %of total consumption 2020:10.0 %of total consumption

IPC Conference Dinner Bioethanol and Biodiesel Production Capacity 2007 (in mill. t): (Source: Ch. Bickert, DLG-News) BioethanolBiodiesel global359 thereof:Brasil14,50,7 USA14,51,9 EU-273,06,1 thereof:GER0,63,0 FRA0,50,6 ITA-0,5

IPC Conference Dinner Bioethanol and Biodiesel Land Resource for the Production of Biofuels: (Source: St. Tangermann, M. Lampe) BrasilUSAEU15 Share of Biofuels ,6 %1,6 %0,8 % Land needed in % of Cereals-, Oilseeds- & Sugararea Goals set for Biofuels10 % Land needed in % of Cereals-, Oilseeds- & Sugararea

IPC Conference Dinner Oilseeds: Production Costs 1) 2002 Source: Parkhomenko (2003). 1) without land costs € / t Rapeseedequivalent Rapeseed Soyabeans CA-1214CA-2430CA-1214CA-2024 DE-700 DE-1500 DE-560 DE-1300 CN-0.34 AR-250AR-350 AR-1500 BR-500 BR-1000 USA-713 USA-1903USA-1012USA-1943 USA-405 USA-810 CN-4.3CN-1.2 ID-2 ID-2500 MY-2300MY-4300 SEA Germany CanadaSouth- Amerika ChinaUSAChina Direct Costs Operating Costs Fixed Costs Interests Setup Costs Conversion Costs Palmoil (FFB)

IPC Conference Dinner Biofuels Land- and CO 2 -Efficiencyavoidance of Biofuels: (Source: L. Langbehn; Y. Zimmer) BiofuelsLiter Fuel per ha € per tonne CO 2 Equivalent Biodiesel from Rapeseeds Rapeoil Ethanol from Cereals Biogas from Cereals Biogas from Silo Maize4.977-

IPC Conference Dinner Consequences for the Biofuel Politics until % Biofuels is very ambitious and can only be reached with the help of the 2nd generation and partly with imports Cereal- and Oilseeds Politics must be adjusted to the development of the Biofuel Production (Closedown, Subsidies, Intervention, Quality, GMOs, External Protection) Optimization of the Production should be based on the CO 2 -Avoidanceefficiency Sustainability-Standards for Production and Imports? Intensification of Research for the 2nd Generation of Biofuels Food Production must stay Priority

IPC Conference Dinner Agriculture vs. Farming A specific sector with An industry like a cultural dimension any other industry Pragmatism bridges the tensions Concentration on demand of food, services and renewables

IPC Conference Dinner Thank you for your attention!